ANNUAL REVIEW

Transcription

1 INTERNATIONAL COFFEE ORGANIZATION 22 Berners Street London W1T 3DD United Kingdom Phone: +44 (0) Fax: +44 (0) ANNUAL REVIEW

2 OUR MISSION The Interna onal Coffee Organiza on (ICO) is the main intergovernmental organiza on for coffee, bringing together expor ng and impor ng Governments to tackle the challenges facing the world coffee sector through interna onal coopera on. Its Member Governments represent 94% of world coffee produc on and over 83% of world consump on. The ICO s mission is to strengthen the global coffee sector and promote its sustainable expansion in a market-based environment for the be erment of all par cipants in the coffee sector. It makes a prac cal contribu on to the development of a sustainable world coffee sector and to reducing poverty in developing countries by: Enabling governments and the private sector to exchange views on coffee ma ers, market condi ons and trends, and coordinate policies at high-level mee ngs. Promo ng market transparency by providing a wide range of sta s cs on the world coffee sector. Developing coffee consump on and markets for coffee through innova ve market development ac vi es. Encouraging the development of strategies to enhance the capacity of local communi es and small-scale farmers. Promo ng training and informa on programmes to assist the transfer of technology relevant to coffee. Facilita ng informa on on financial tools and services to assist producers. Providing objec ve and comprehensive economic, technical and scien fic informa on on the world coffee sector. CONTENTS 2 Foreword by the Chairman of the Council 4 Overview by the Execu ve Director 6 The World Coffee Market 9 6 th Consulta ve Forum on Coffee Sector Finance 10 4 th World Coffee Conference 12 Interna onal Coffee Agreement Interna onal Coffee Day 14 Coffee development projects 17 Coopera on with other agencies 18 Promo ng consump on 19 Private sector coopera on 20 Strategic Review of the ICO 21 Economic studies 24 Sta s cs 24 Sustainability and partnerships 26 Library / Informa on services 27 Finance and Administra on 28 Office holders Map created using infogr.am Front cover: Ethiopian lady preparing coffee ISSN ICO Annual Review 2015/16-1

3 FOREWORD BY THE CHAIRMAN OF THE COUNCIL As the Honduran Ambassador to the United Kingdom, it has been a great honour for me to serve as the Chairman of the Interna onal Coffee Council during coffee year 2015/16. This has been a year of great change for the Organiza on marked by a number of achievements. Ethiopia, the birthplace of coffee, hosted the 4 th World Coffee Conference this year. The 77 Member Countries of the ICO and over 900 a endees, including coffee growers and representa ves from government, the private sector, and interna onal agencies par cipated in the discussions related to the theme of the Conference, Nurturing coffee culture and diversity. H.E. Mr Iván Romero-Mar nez Chairman of the Council The coffee community from Africa and around the world gathered in the Ethiopian capital for two days to engage in debate on a variety of topics ranging from sustainability, consump on trends, specialty coffee, climate change, farm produc vity, gender equality and price vola lity. As the outgoing Chairman of the Council and the representa ve of Honduras to the United Kingdom and the ICO, I hope that Members and the Secretariat will consider the discussions that took place in Addis Ababa and use their outcomes to strengthen the work of the Organiza on. Public policy has a major role to play in tackling the challenges that the coffee sector faces, especially those that directly affect the millions of coffee farmers around the world. The ICO has seen great changes in the global coffee market since the Organiza on was founded in 1963 and its role con nues to be of great relevance to the coffee community. This is precisely why the work done this year on the Strategic Review of the Organiza on is so cri cal and important. During the September mee ng, the Members of the ICO approved a plan to sharpen the strategic focus and define the priori es of the Organiza on be er in order to provide adequate guidance to the Secretariat. The Strategic Review outlines three key goals for the Organiza on: improving the collec on, analysis, and dissemina on of ICO sta s cs and analy cs; increasing the quality, relevance and impact of the ICO as the forum and pla orm for private-public coopera on in the coffee sector; and posi oning the ICO as the hub for the development of effec ve private-public partnerships for the implementa on of coffee development projects and the promo on of coffee consump on. I would like to commend the Secretariat for this very important work and offer my full support in coffee year 2016/17 as it develops the five-year Ac on Plan to achieve the three goals set out in the Strategic Review. Coffee year 2015/16 also saw the celebra on of the second annual Interna onal Coffee Day (ICD). A er a successful launch in 2015, the Secretariat designed a campaign in 2016 aimed at increasing knowledge about the celebra on on 1 October and encouraging independent businesses to host their own events on the day. 2 - ICO Annual Review 2015/16

4 The ICD website and the logo were redesigned for the 2016 campaign. The website received more than 120 independent event submissions from more than 56 countries. Promo on for the campaign took place across social media with four short videos appealing directly to the industry to create and submit their ICD 2016 event details. The videos also targeted coffee consumers encouraging them to visit the website and celebrate the occasion. I would like to congratulate the Secretariat on the great work done for this campaign and provide my full support and encouragement for future celebra ons. To conclude, I would like to thank all Members of the ICO for the honour and pleasure of having served as the Chairman of the Council. I would like to offer my full support to Ms Tanya Menchi of the United States of America as she begins her tenure as Chairperson in coffee year 2016/17. Finally, I thank the Execu ve Director and the Secretariat for their support and dedica on to the work of the Organiza on. Honduras and my team look forward to many more years of coopera on. We were all shocked by the sad news of the death of our dear friend Robério Oliveira Silva, the Execu ve Director, in December I had a long and cordial rela onship with Robério since his early years as the Secretary-General of the Associa on of Coffee Producing Countries un l his appointment as the Execu ve Director of our Organiza on. I have had many opportuni es to work closely with him to address the challenges of the coffee sector in my country, Honduras, as well as those facing the Organiza on. The coffee sector has lost a great asset and good friend. I would like to pay a special tribute to him. May his soul rest in eternal peace. Iván Romero-Mar nez Ambassador of Honduras to the United Kingdom Chairman of the Interna onal Coffee Council 2015/16 ICO Annual Review 2015/16-3

5 OVERVIEW BY THE EXECUTIVE DIRECTOR Mr Robério Oliveira Silva Execu ve Director One of the highlights of coffee year 2015/16 was undoubtedly the 4 th World Coffee Conference which was held in Addis Ababa, Ethiopia, the birthplace of Coffee Arabica, from 6 to 8 March 2016, chaired by H.E. Mr Ato Teferra Derebew, Minister of Agriculture and Natural Resources of Ethiopia. An audience of over 900 coffee growers and representa ves from governments, the private sector, non-governmental organiza ons and interna onal agencies came together to focus on the theme Nurturing coffee culture and diversity. The conference was honoured by the presence of H.E. Mr Hailemariam Dessalegn, Prime Minister of Ethiopia during the Opening Ceremony and H.E. Mrs Roman Tesfaye, First Lady of Ethiopia who addressed the audience prior to the panel on promo ng gender equality. I would like to reiterate my thanks to the Government of Ethiopia and its Prime Minister. Coffee year 2015/16 saw the establishment of a Working Group on the Strategic Review of the ICO aimed at maintaining the ICO s relevance in the coffee sector and allowing the Organiza on to adjust to an ever-changing coffee market. I am encouraged by the construc ve spirit and enthusiasm shown by the Members of the Working Group in rela on to improving the work of the Organiza on further and am confident that the development of a new five-year Plan will be completed by September During coffee year 2015/16 the Organiza on held its 6 th Consulta ve Forum on Coffee Sector Finance on the theme Global challenges and co-responsibility in the Coffee Sector. The debates were organised through five panels including tackling challenges in coffee growing countries, socio-economic indicators, co-responsibility for climate change, interna onal coffee prices and financial mechanisms for coffee growers. Looking back at the market during coffee year 2015/16 price movements reinforced concerns about the profitability of growing coffee. Prices of all groups of coffee decreased in rela on to the previous coffee year. The ICO composite indicator price fell by 10.9% while the prices of Colombian Milds, Other Milds, Brazilian Naturals and Robustas fell by 11.9%, 8.9%, 10.3% and 10.8% respec vely. Such nega ve movement of prices is worsening the already cri cal financial situa on of coffee growers. If coffee growers do not have a viable business, how are they going to con nue to produce coffee and make improvements in the areas of social and environmental sustainability? The coffee sector is therefore experiencing considerable challenges. In recent years, a broad consensus has been established that climate change is one of the biggest challenges to the future of the coffee sector. It is in this context that the Organiza on has been monitoring closely the debates of the interna onal community by par cipa ng in the 21 st Conference of the Par es (COP21) held in Paris in December The year was marked by three sad events: the death of Mr Richard Kingsbury, the ICO s longest-serving interpreter, in March The second sad event was the death of Mr Alexandre Fontana Beltrão in Rio de Janeiro on 4 April Mr Beltrão was the longest-serving Execu ve Director of the ICO from 1 April 1968 to 30 September 1994 and the Interna onal Coffee 4 - ICO Annual Review 2015/16

6 Council paid tribute to him for his outstanding contribu on. Another sad event took place on 16 April 2016 when the Republic of Ecuador was hit by an earthquake with devasta ng effects as hundreds of people died and thousands were injured in the six affected provinces including coffee growing areas. I have called on the global coffee community to support the vic ms. During the coffee year, I par cipated in mee ngs in Angola, Brazil, Colombia, Côte d Ivoire, El Salvador, France and India where I advocated the relevance of the ICO and confirmed the support of the Organiza on to its Members. On a personal note, I should like to express my apprecia on for the confidence placed in me by Members in renewing my term of office un l March I would also like to express my sincere gra tude to the staff of the Organiza on for their support throughout my first term of office; their dedica on has been instrumental in the ICO s relevance and success. I am confident that their commitment will con nue as I start a new term of office. To conclude, I would like to thank the Chairman of the Interna onal Coffee Council, H.E. Mr Iván Romero-Mar nez of Honduras as well as the Chairpersons of the ICO Advisory and Consulta ve bodies, for their work and collabora on over the past year. Robério Oliveira Silva Interna onal Coffee Organiza on Execu ve Director The contents of this Annual Review, including the overview by the Execu ve Director were approved by Mr Robério Oliveira Silva before the Christmas and New Year break. Unfortunately, it was his last professional act since he passed away on 30 December 2016 at his family home in Belo Horizonte, Brazil. Mr Silva s death at only 53 put an early end to a rich career. He was born on 15 June 1963 in Pedra Azul, Minas Gerais, the son of Gabriel de Almeida Silva and Dilma Oliveira Silva. He is survived by his parents and two brothers. Mr Silva a ended the Federal University of Minas Gerais in Brazil and graduated in Economics. He worked in both the public and private sectors, including the Ministry of Economy, and the Office of the President of Brazil before becoming Secretary-General of the Associa on of Coffee Producing Countries (ACPC) in Therea er he worked for Brazil s Chamber of Foreign Trade, Ministry of Development, Industry and Interna onal Trade. Finally, he was Director of the Coffee Department at the Brazilian Ministry of Agriculture, Livestock and Food Supply in Brasilia before taking up his posi on as the 5 th Execu ve Director of the Organiza on on 1 November During his tenure at the ICO he increased the ICO s membership by 11 new Members and ini ated discussions with several poten al new Members. He stabilised the running costs of the Organiza on, so that Members contribu ons have not increased for over five years. Mr Silva will be remembered for paving the way for a significant change of direc on by commencing a wide ranging strategic review of the Organiza on s work. The world coffee community will profit from his legacy. ICO Annual Review 2015/16-5

7 THE WORLD COFFEE MARKET P The coffee market started 2015/16 at rela vely low levels, but steadily improved from January onwards, registering six consecu ve months of higher prices by July. The daily price of the ICO composite indicator hit a low of US cents/lb in January, before recovering to reach a high of cents by the end of the coffee year. Graph 1: ICO composite indicator daily prices 200 US cents/lb ICO composite Colombian Milds Other Milds Brazilian Naturals Robustas 50 The most significant growth was recorded in Robustas, which increased by 40% from a low of 71.5 cents in February to cents on 29 September. The three Arabica groups also registered consistent growth between January and September, all groups hi ng their highest monthly average in September. Furthermore, the Other Milds groups con nued trading above Colombian Milds for the second consecu ve year, reflec ng the different availabili es of each group. The following table shows annual averages for the ICO indicator price for coffee years 2010/11 to 2015/16. ICO CM 1 OM 2 BN 3 ROB / / / / / / % change 2014/ / % -14.6% -12.2% -13.0% -13.2% 1 Colombian Milds 2 Other Milds 3 Brazilian Naturals 4 Robusta 6 - ICO Annual Review 2015/16

8 S Produc on reached 148 million bags in 2015/16, up 0.9% compared to last year but s ll lower than the two previous years. Arabica produc on was up by 0.7% to 85.8 million bags, while Robustas were es mated up 1.3% to 62.2 million. In the largest producer, Brazil, produc on for 2015/16 is es mated at 48.4 million bags, down by 5.3% compared to the previous year as the drought in 2014 reduced output, par cularly of Robusta. Produc on in Vietnam was maintained at 27.5 million bags, up 3.8% on last year, while Colombia was higher at 14 million bags, its highest volume since 1992/93. Graph 2: ICO group indicator daily prices Million 60kg bags / / / /16 Arabica Robusta C Global coffee consump on has con nued to increase, reaching a record million bags in coffee year 2015/16, represen ng an average annual growth rate of 1.3% over the last four years. By far the strongest growth rates have been found in Asia & Oceania, averaging 3.7% per annum, followed by North America (+1.7%) and Africa (+1.2%). More modest growth rates were recorded in Mexico & Central America (+0.8%), Europe (+0.4%) and South America (+0.2%). Graph 3: Coffee produc on by con nent Africa Asia & Oceania Mexico & Central America Europe North America 2012/ / / /16 South America Million 60kg bags ICO Annual Review 2015/16-7

9 I T Total exports in coffee year 2015/16 came to million bags down by 0.7% on 2014/15. This is the second consecu ve year in which exports have declined, following the record volumes set in each of the four previous years. Exports of the three Arabica groups all increased year on year, with shipments of Colombian Milds, Other Milds and Brazilian Naturals up by 1.1%, 5.5% and 2.6% respec vely, while Robusta exports were down by 6.9% to 40.8 million bags. B As a result, we see a deficit in 2015/16 for the second consecu ve year, with consump on exceeding produc on by 3.3 million bags. However, the market has remained well supplied by stocks accumulated during the surplus years of 2012/13 and 2013/14. Inventories in impor ng countries reached 24.2 million bags at the end of June 2016, their highest level since September 2009, which gives a buffer against any short-term supply concerns. P Looking ahead, prospects for 2016/17 are currently mixed. Brazil is expected to harvest a significantly higher crop, currently es mated at 54.5 million bags. However, prospects for Robusta produc on are less posi ve, with weather affec ng output in the three major producers Vietnam, Indonesia and Brazil. This is likely to result in a shor all of Robusta produc on, which should con nue to provide support to the market. Graph 4: World coffee produc on, consump on and balance Balance (million 60kg bags) / / / /16 Balance Production Consumption Production/Consumption (Million 60kg bags) 8 - ICO Annual Review 2015/16

10 6 th CONSULTATIVE FORUM ON COFFEE SECTOR FINANCE The 6 th Consulta ve Forum on Coffee Sector Finance took place in London on 21 September The theme of the Forum was Global Challenges & Co-Responsibility in the Coffee Sector. The Forum was chaired by Mr Juan Esteban Orduz, President and CEO of the Colombian Coffee Federa on Inc. Par cipants discussed the challenges facing the coffee sector: in par cular, the main ques on was whether coffee farmers alone are bearing the brunt of the costs to address these challenges or what can be done to distribute value and responsibility evenly across the coffee value chain. An exchange of views on this theme was organised through five panels. The Secretariat launched the panel discussions by releasing its new study on the economic sustainability of coffee growing to provide a star ng point to the experts and par cipants. P 1: T Experts discussed the most important challenges that coffee communi es face and how coffee growers cope with the situa on. Lessons learnt from the experience of several producing countries, par cularly Brazil, El Salvador, Vietnam and several African countries were presented. P 2: S - The main ques on was the profitability of coffee farming as many farmers are becoming poorer with the current market condi ons of low and vola le prices and high produc on costs. The panel concluded that it was important to establish socio-economic indicators of coffee farming. P 3: C - How can we ensure that responsibility for adap ng to and mi ga ng climate change is shared by all stakeholders in the value chain? It was noted that for the same effort farmers are receiving less income while climate change is pu ng massive pressure on them. P 4: I The most vulnerable to price vola lity are farmers. Does the New York C Contract reflect market fundamentals or is it just a specula ve tool? Are there other price discovery mechanisms that should be explored? Experts considered that in general the futures market is a good price discovery mechanism for mainstream coffee, but not for gourmet Arabica. The New York market does reflect the fundamentals as it is sensi ve to the Brazilian supply of natural Arabica due to an important volume from this origin. P 5: F s There are significant opportuni es available to facilitate the provision of finance to smallholder coffee farmers. However, farmers are not accessing this facility due to high interest rates in some countries, and the high risk of lending to small scale farmers. How can one bring together private capital and public capital? The discussion concluded that one of the solu ons would be to aggregate these farmers to gain more benefit from the financial sector. Coopera ves should have access to financial mechanisms which would allow them to manage market vola lity and in turn benefit coffee growers. 6 th consultative forum on coffee sector finance Mr Juan Esteban Orduz Chairman of the 6 th Forum Speakers and moderators 6 th Forum ICO Annual Review 2015/16-9

11 4 th WORLD COFFEE CONFERENCE H.E. Mr Teferra Derebew Minister of Agriculture and Natural Resources, Ethiopia The 4 th World Coffee Conference (WCC) was held in Addis Ababa, Ethiopia from 6 to 8 March 2016, with the theme Nurturing Coffee Culture and Diversity. Over 900 par cipants took part, including Ministers, Ambassadors, and high-level dignitaries from across the world, along with representa ves from the private sector, coffee farmers and academia. The Conference was opened by H.E. Mr Hailemariam Dessalegn, Prime Minister of the Federal Democra c Republic of Ethiopia and comprised 7 panels on a variety of topics rela ng to the overall Conference theme, with 22 panellists and moderators speaking and discussing the state of the coffee sector. The WCC was a joint effort of the public and the private sectors. Strongly supported by Ethiopia s leading coffee companies, the event was organised by the Ethiopian Ministry of Agriculture and Natural Resources and the ICO. The first day of the Conference started with a review of the diverse culture of coffee across La n America, Africa and Asia. The panellists also examined the challenges faced by the coffee sector which need to be addressed in order for coffee growers to achieve economic sustainability around the globe, and to maintain diversity in coffee culture. Delegates par cipa ng at the 4 th World Coffee Conference The a ernoon ended with a discussion of the development of coffee consump on worldwide and its future prospects, offering viewpoints from various geographical regions and market segments, and sought to determine whether the demand for coffee will con nue to increase given the current global economic outlook. During the second day of the conference the discussions moved from the global to the local level, from macro-trends to specific issues in the coffee sector. In the morning, a lively panel discussed the impact that the specialty coffee movement has had on the industry, par cularly on farmers income. Panellists offered viewpoints on the defini on of specialty coffee and its future, specifically on how specialty coffee can con nue to differen ate itself from mainstream coffee, which is increasingly adop ng specialty coffee characteris cs ICO Annual Review 2015/16

12 During the lunch break many par cipants had the opportunity to explore the exhibi on which comprised booths and displays celebra ng the local coffee culture and included a demonstra on of the coffee ceremony. The a ernoon saw two events on the impact of climate change on coffee produc on. An expert panel was followed by a side event hosted by the Coffee and Climate Change ini a ve. Panellists discussed concrete adapta on or mi ga on measures which can be undertaken as climate change con nues to be a major threat to coffee produc on. The session covered the latest research results and ini a ves launched by the private and public sectors. The debate con nued with a panel on the role of innova on and public policy in increasing produc vity. The speakers shared their views on the latest developments in research and innova ve technologies which could contribute to increasing produc vity and produc on. They also explored public policies in expor ng countries which foster the adop on of modern farming techniques. Mr Hussien Agraw President of the Board Ethiopia Coffee Exporters Associa on The WCC also provided a forum to discuss gender equality in the coffee sector. The ques on of how to ensure that female coffee farmers have the same access to resources and opportuni es as their male counterparts was at the centre of the debate. In this session, panellists also presented poten al solu ons for reaping the rewards of female empowerment. The Conference ended with an in-depth review of the issue of coffee price vola lity. A panel consis ng of researchers and industry specialists covered aspects such as the current market situa on, specifically the prevailing low interna onal prices, and considered the impact of both prices and price vola lity on coffee farmers. The panellists agreed that coffee produc on is becoming more concentrated worldwide, with a small number of highly efficient producers domina ng the market. This in turn could increase price vola lity, as can be seen already in the cocoa market, and this trend is likely to be exacerbated by climate change. As in previous years, the results of the World Coffee Conference provide some key implica ons for the future work of the ICO and more specifically for the Strategic Review that the Organiza on is undertaking at the request of its Members. Specifically, as part of its sta s cs and economics func on, the ICO can foster market transparency by increasing its capture, analysis and dissemina on of sta s cal informa on. This will help both consumers and producers to adjust to market trends and mi gate price vola lity. Via its forum func on, the ICO is going to help disseminate informa on on best prac ces both within its Membership and beyond, in order to share examples of successful ini a ves. The ICO has an important role to play in advoca ng for issues such as gender equality and youth engagement. Finally, through partnerships the ICO can play a crucial role in promo ng coordina on and collabora on between the public and private sectors. H.E. Mr Wondirad Mandefro State Minister of Agriculture and Natural Resources, Ethiopia ICO Annual Review 2015/16-11

13 INTERNATIONAL COFFEE AGREEMENT 2007 The Interna onal Coffee Agreement (ICA) 2007, the seventh Agreement since 1962, entered into force on 2 February 2011 for a dura on of ten years, with the possibility of an extension for a further eight years. The objec ve of the Agreement is to strengthen the global coffee sector and promote its sustainable expansion in a market-based environment for the be erment of all par cipants in the sector. In March 2016, the Interna onal Coffee Council at its 116 th Session discussed a possible review of the ICA as provided for in Ar cle 48 of the Agreement. However, it was decided that the Strategic Review would cast light on whether or not the Agreement needed to be amended. H.E. Mr Claudio De la Puente Ambassador of Peru Mr Robério Oliveira Silva Execu ve Director Over the course of coffee year 2015/16, the ICO membership increased to 77 Members (42 expor ng Members and 8 impor ng Members, including the EU with 28 member States). Both the Democra c Republic of the Congo and Peru joined the Organiza on as expor ng Members. As for non-members, Nepal informed the Secretariat that its Parliament should have a final hearing on the Interna onal Coffee Agreement 2007 in late If everything proceeds as expected, Nepal will become a Member in me for the 119 th Session of the Interna onal Coffee Council. The Lao People s Democra c Republic con nues to be in regular contact with the Secretariat regarding its desire to become a Member. In June 2016 the Lao representa ve informed the Secretariat that the decision on accession to be made by the Ministry of Industry and Trade was s ll awaited. However, with the elec on of a new Prime Minister there was a new sense of op mism. There is an opportunity to bring coffee further up the government s agenda as the Prime Minister looks to expand the country s exports and become more involved in world affairs. H.E. Mr Hermano Telles Ribeiro Permanent Representa ve of Brazil presen ng his creden als to the ICO During the coffee year, the Execu ve Director has been in contact with the Republic of Korea about its inten on to become a Member of the ICO under the ICA The representa ve of the Coffee Associa on of China is coopera ng with the ICO to encourage its Government to become a Member. At its 117 th Session in September 2016, the Interna onal Coffee Council adopted Resolu on 458 extending the deadline for the deposit of instruments of ra fica on, acceptance, approval or accession to 29 September ICO Annual Review 2015/16

14 INTERNATIONAL COFFEE DAY On 1 October 2016, the 77 Member countries of the ICO and dozens of coffee associa ons from around the world celebrated the second annual Interna onal Coffee Day (ICD). The highly successful 2016 campaign posi oned ICD as a truly global celebra on of coffee s journey from the farm to the cup with the slogan For the love of coffee. As a means to reinvigorate and strengthen the ICD brand, the Execu ve Director informed the Promo on and Market Development Commi ee that a new logo had been designed in the four official languages featuring a coffee cup with coffee droplets, an emblem used throughout the marke ng materials. In order to a ract more a en on from Internet and social media users, the new logo is animated. The ICD website, redesigned for the 2016 campaign, received over 120 independent event submissions from more than 56 countries around the world. Promo on for the campaign took place across social media with four short videos appealing to the industry to create and submit their ICD 2016 event details. The videos also targeted coffee consumers encouraging them to visit the website and celebrate the occasion. The campaign for ICD 2017 will con nue the ac vi es already undertaken in the previous two years and in par cular will aim to increase alliances within the industry, including with coffee retailers. ICO Annual Review 2015/16-13

15 COFFEE DEVELOPMENT PROJECTS I Notwithstanding the recent challenges of securing new funding, coffee sector development projects in Member countries remain one of the most important ac vi es of the Organiza on. Since coffee year 1995/96 a close working rela onship between the ICO, the Common Fund for Commodi es (CFC) and other interna onal development agencies has shown remarkably posi ve results as more than 38 projects totalling around US$100.3 million have been funded to support Member countries in addressing cri cal issues such as coffee pests and diseases, quality improvement and market development. The CFC has provided approximately 50% of the funding while the rest has come from co-financing and counterpart contribu ons from bilateral and mul lateral grant-providing agencies as well as from beneficiary countries. Project beneficiaries in coffee year 2015/ Million US$ Concluded projects Ongoing projects N C F C During coffee year 2015/16 the CFC approved a project proposal en tled Empowering women and youth to par cipate in the coffee value chain through partnerships with a coffee roas ng company and eco-tourism in Uganda. The project designed under the new funding criteria of the CFC with the ICO s technical assistance aims to improve the standard of living of women and youth growing coffee through improved and sustainable produc on, value addi on and marke ng systems in Uganda. Its total cost is US$760,000 including US$120,000 from the CFC and US$600,000 from the private sector. As required by the new project financing policy, the CFC and the ICO Secretariat are seeking to iden fy a development impact partner before organizing the launch of project ac vi es. O The ICO, as the designated Supervisory Body for CFC coffee projects, assists with monitoring the implementa on of projects, which includes reviewing the a ainment of objec ves, iden fying constraints and checking 14 - ICO Annual Review 2015/16

16 expenditure. During coffee year 2015/16 the Secretariat con nued to monitor and supervise three projects spanning four countries: the Democra c Republic of the Congo, Ethiopia and Rwanda, and Burundi. Qualita ve and quan ta ve rehabilita on of coffee with the aim of improving living condi ons of coffee farmers afflicted and displaced by war in the Democra c Republic of the Congo (CFC/ICO/51) The four-year project aims to improve the living condi ons of coffee farmers afflicted and displaced by war in the provinces of North and South Kivu. Funded mainly by the CFC through a grant, the project has a total cost of US$1,611,447, which includes a grant of US$668,990 from the CFC and US$700,000 from the OPEC Fund for Interna onal Development. The Project Execu ng Agency, VECO, a Belgium NGO, contributed an amount of US$242,457. The project was launched in March 2014 and is expected to end in February Sustainable Credit Guarantee Scheme to promote scaling up of enhanced processing prac ces in Ethiopia and Rwanda (CFC/ICO/48) Delivery of equipment for the washing sta on in the Democra c Republic of the Congo This project is designed to improve the livelihoods of small-scale coffee farmers in Ethiopia and Rwanda on a sustainable basis. This will be achieved by promo ng the produc on of high quality coffee through the adop on of enhanced coffee processing prac ces. The high quality coffees will subsequently a ract premium prices in the market, thereby transla ng into improved household income. Project ac vi es carried out by CABI include the provision of credit to coffee farmers by commercial banks in Ethiopia and Rwanda with guaranteed collateral provided by the CFC. The project is expected to end during coffee year 2016/17. Promo ng a sustainable coffee sector in Burundi The broad objec ve of the project is to promote sustainable coffee produc on in Burundi. A sustainable coffee economy is based on the well-being of the various actors in the chain, par cularly the producers who are the weakest link. The project seeks to improve the skills of smallholder coffee farmers in order to increase produc vity and the quality of their coffee to generate profit, improve their living standards and con nue farming coffee as a profitable business. The Kahawatu Founda on has been set up by the private sector to start the implementa on of the project using the funds that have already been commi ed while con nuing to raise addi onal funding to cover all project ac vi es. The Interna onal Fund for Agricultural Development (IFAD) has given project offices to Kahawatu in Bujumbura. Since the project began in March 2014, the Founda on has secured two public-private partnership agreements to finance its ac vi es. P There are three projects endorsed by the Council which are seeking funds for implementa on. Enhanced processing prac ces in Rwanda Distribu on of coffee seedlings in Burundi ICO Annual Review 2015/16-15

17 Revitaliza on of the coffee sector of Zimbabwe through enhancement of the coffee value chain: The purpose of the programme is to revitalise coffee produc on in Zimbabwe by suppor ng smallholder farmer groups. This will be achieved through a sustainable increase in coffee produc on, produc vity, quality and profitability through enhancement of the coffee value chain in Zimbabwe. The total cost is US$6,780,000. Improving the par cipa on of women in the coffee value chain in Cameroon: The project aims to increase the income of women coffee farmers through building their capacity to market and process be er. The total cost is US$1,219,400. Promo ng coffee sustainability through increases in produc vity, with par cular focus on the par cipa on of young people and women in Cameroon and the Central African Republic: The project aims to support the efforts made by the two countries to revive and rehabilitate the declining coffee sector in order to boost their rural economies, generate income for coffee farming communi es and reduce poverty among coffee farmers. Its total cost is US$5,070,600. A C F With the technical assistance of the ICO Secretariat, the Inter-African Coffee Organisa on (IACO) has submi ed to the African Development Bank a proposal for the crea on of a coffee development fund known as the Africa Coffee Facility. The overall objec ve of the Facility is to improve the livelihoods of small-scale coffee growers and maximize the contribu on of coffee to na onal economies by enhancing the compe veness of African coffee through good agricultural prac ces, development of business skills, fostering of stronger linkages to markets and investment transforma on of the en re value chain and promo on of knowledge capacity and favourable na onal policies. Following a stakeholders workshop in Abidjan in April 2016, IACO s Secretary-General submi ed the full proposal to the President of the Bank in August The total cost of ac vi es under the Facility is es mated at US$150 million for the first five years of its implementa on. F ICO The future of coffee development projects depends on the results of the Strategic Review. Based on this, the Secretariat will prepare its strategy for effec ve private-public partnerships for projects and promo on. The plan will include maintaining coopera on with the CFC, coopera ng with mul lateral financial ins tu ons for the establishment of coffee facili es as a means through which the challenges faced by a par cular coffee producing region can be addressed. In addi on, strengthening the Secretariat s capacity to engage effec vely with donors interested in funding projects within the coffee sector is envisaged ICO Annual Review 2015/16

18 COOPERATION WITH OTHER AGENCIES Coopera on with other organiza ons on global coffee ma ers is an important element of the work of the ICO and includes representa on at interna onal coffee conferences as well as collabora on with intergovernmental and other organiza ons during Council Sessions. The Execu ve Director and senior ICO officials represented the ICO and made presenta ons on the world coffee market and related topics at a wide range of global coffee events: The Execu ve Director undertook two missions to Brazil in order to meet high level officials of the Brazilian Government and a end the Santos Interna onal Coffee Seminar held in Guarujá. The Head of Opera ons undertook a mission to Vietnam to a end the country s na onal consulta on workshop in the framework of Vision She also met officials from the government and a ended a mee ng of the Vietnamese Coffee Coordina on Board. The Chief Economist par cipated in Paris at the second awards ceremony of coffee roasted at origin organized by the Agency for the Valorisa on of Agricultural Products (AVPA). The Senior Economist gave two lectures on coffee economics at the Georg-August-University of Goe ngen as part of a Post-graduate course run by the Department of Agricultural Economics. The Execu ve Director spoke at the awards ceremony during the first Cafe de El Salvador Coffee Quality event held in San Salvador, El Salvador. The Execu ve Director and the Chief Economist par cipated in a workshop held in Abidjan, Côte d Ivoire about the Africa Coffee Facility. The Facility is an instrument designed to finance coffee development project ac vi es in Africa through the African Development Bank Group (AfDB). Following the workshop, the Secretary General of the Inter-African Coffee Organisa on submi ed the full proposal to the President of the Bank. The Execu ve Director met Dr Tedros Adhanom Ghebreyesus, Minister of Foreign Affairs of Ethiopia in Addis Ababa The Execu ve Director gave a keynote speech at the 6th Indian Coffee Fes val about the challenges currently facing the industry such as access to finance, gender equality, young people s involvement in coffee farming, climate change and produc vity. At the 21 st Conference of the Par es (COP21) on the United Na ons Framework Conven on on Climate Change, held in Paris, France, the Execu ve Director gave a speech at the high-level segment of this Conference, raising awareness about the impact of climate change on coffee. The Execu ve Director met the Heads of State of Colombia and Honduras at the COP21 in Paris H.E Ms Elisabeth Hayek-Weinmann Ambassador of El Salvador visits the ICO H.E. Mr Hailemichael Aberra Afework Ambassador of Ethiopia visits the ICO ICO Annual Review 2015/16-17

19 Mr Robério Oliveira Silva IV IWCA Conven on Bogota, Colombia The ICO hosted a side event on coffee and climate in the public area of COP21. During the event, four experts addressed different aspects of the climate change challenge. Members of the audience also had the opportunity to ask ques ons. The Execu ve Director held a mee ng with H.E. Mr Juan Orlando Hernández, President of Honduras, and H.E. Mr Juan Manuel Santos, President of Colombia during the COP21 in Paris. At the Global Landscapes Forum which took place in Paris in parallel to COP21, the ICO collaborated with the organisa on Hivos and the Hans R Neumann S ung Coffee & Climate to host an event en tled The role of agro-ecology in exploring innova ve, viable adapta on measures for resilient smallholder coffee landscapes. The Execu ve Director delivered the opening remarks at the 55 th General Assembly of the Inter-African Coffee Organisa on and the 3 rd African Coffee Symposium, in Luanda, Angola. The Chief Economist delivered the opening remarks at the IV General Assembly of the Agency for Robusta Coffee of Africa and Madagascar (ACRAM), in Lomé, Togo. The Execu ve Director gave opening remarks at the IV IWCA Conven on, in Bogota, Colombia which highlighted the important role that women have to play in the coffee sector. The interim Head of Opera ons a ended the 39 th Interna onal Hospitality Exhibi on in Milan, Italy, to deliver a speech about the coffee market. PROMOTING CONSUMPTION The ICO and the SCAE-UK Educa on Coordinators joined forces in 2015 to create a series of coffee educa on events at the ICO s conference facili es in London en tled The Coffee Sessions. The Coffee Sessions aim to promote interest in coffee quality, to improve standards and to shorten the distance between farmer, roaster, barista and consumer. These events also provide networking opportuni es for professionals and consumers alike an opportunity for the various disciplines to cross boundaries. Three Coffee Sessions events took place in coffee year 2015/16, featuring experts on the topics of green coffee defects, sensory science and coffee roas ng research ICO Annual Review 2015/16

20 PRIVATE SECTOR COOPERATION The Private Sector Consulta ve Board (PSCB) met twice during 2015/16, chaired by Mr Leman Pahlevi of the Indonesia Coffee Exporters Associa on. One of the main topics discussed was Interna onal Coffee Day, which had originated as a proposal from the PSCB to the Council. At its March mee ng, the Board heard presenta ons from the representa ve of the Specialty Coffee Associa on of America (SCAA) on the new SCAA Coffee Taster s Flavour Wheel, which had been developed in collabora on with World Coffee Research. This new wheel was based on a sensory lexicon developed by the coffee industry along with experts in sensory science, and was designed for ease of use by coffee tasters and cuppers. At its September mee ng, the PSCB heard two presenta ons. Firstly, from the representa ve of the Ins tute for Scien fic Informa on on Coffee (ISIC) on the outcomes of the mee ng of the Interna onal Agency for Research on Cancer (IARC), which had been held in France in May 2016 on the Evalua on of Carcinogenic Risks to Humans with regard to Coffee. The outcome of this mee ng, that coffee was not classifiable as carcinogenic to humans, was seen as very posi ve. IARC also found that drinking very hot beverages (over 65 degrees) was probably carcinogenic to humans, but it was very unlikely that consumers would be able to drink coffee at such temperatures, which would scald the mouth and tongue. The second presenta on was from the Director of World Coffee Research (WCR) and the representa ve of the Crop Trust on A Global Conserva on Strategy for Coffee Gene c Resources. It was emphasised that there was a need to preserve the gene c diversity of coffee, but there was a lack of resources currently available to carry this out. WCR and the Crop Trust had carried out an assessment of the status of major coffee collec ons worldwide, and the results of this evalua on were very concerning: several germplasm collec ons were stored at the na onal level, but there was no mechanism for sharing and preserving these materials. It was hoped that Members would take this informa on back to their na onal governments and ins tu ons to discuss the importance of this problem, and how the Global Conserva on Strategy for Coffee Gene c Resources could become a means to mobilise available funding for countries interested in establishing a bilateral partnership with the Crop Trust and World Coffee Research. Finally, the representa ve of the Chinese Coffee Associa on expressed its interest in increasing its par cipa on with the ICO, and poten ally joining the PSCB. This was warmly welcomed by the Board, and would be taken under considera on in the next round of nomina ons to the PSCB. ICO Annual Review 2015/16-19

21 STRATEGIC REVIEW OF THE ICO At its 115 th Session in Milan, Italy, the Interna onal Coffee Council adopted a Resolu on which calls for a strategic assessment of the ac vi es undertaken by the ICO. In the course of coffee year 2015/16, in close consulta on with a Working Group which was created specifically for this task, the ICO Secretariat has conducted the first phase of the Strategic Review. Strategic Review mee ng The aim of this exercise was to sharpen the strategic focus and recommend priority areas for the Organiza on. This will allow it to become adaptable and be able to respond be er to growing challenges in the coffee sector and an ever changing market environment. Furthermore, the outcome of this process will enable the ICO to align its ac vi es with the emerging global poli cal agenda established by the Sustainable Development Goals (SDGs). Over several months the Secretariat implemented a comprehensive process which comprised a broad desk study, a comprehensive mul -stakeholder consulta on process and a comparison with other Interna onal Commodity Bodies based in London. This process enabled the Organiza on to (i) evaluate the global context in which the ICO operates, (ii) review the progress achieved to date and resources used to implement the objec ves of the ICA 2007; and most importantly, (iii) propose a set of recommenda ons to sharpen the strategic focus of the ICO. Strategic Review workshop As a result of the process it is recommended that in order to encourage the development of a sustainable and inclusive global coffee sector and contribute to the achievement of the SDGs, the ICO should focus on three areas: first, delivering world-class data, analysis and informa on to inform policy makers and industry; second, the Organiza on should use its convening power to provide a forum for dialogue between and within the public and private sectors; and third, the ICO should facilitate the development of projects and programmes through public-private partnerships. Details on the recommenda ons can be found in the Report of the Strategic Review of the ICO (ICC ), approved by the Interna onal Coffee Council at its 117 th Session in March The recommenda ons derived from the first conceptual phase of the Strategic Review are the star ng point for the development of a revised strategy which will enable the Organiza on to focus exis ng resources, strengthen opera ons, establish agreement around intended goals and outcomes, and assess and adjust the Organiza on s direc on in response to a changing environment. A clear roadmap will be established in the form of the following strategies: data and analy cs, Membership and third party engagement and effec ve private-public partnerships for projects and promo on. These strategies will enable the Organiza on to deploy its resources in order to steer its opera ons towards the revised and sharpened strategic objec ves ICO Annual Review 2015/16

22 ECONOMIC STUDIES F A (ICC-116-4) While in most coffee-producing countries smallholders are growing old, young people are increasingly less inclined to follow in their parents footsteps and engage in coffee farming. This is problema c since rural youth is widely regarded as the poten al driver of change in the agricultural sector as a result of their being be er educated and more entrepreneurial than previous genera ons. Therefore, there is concern in the coffee industry that the lack of a new genera on of young growers could affect the supply of high quality coffee beans. Ageing farmer popula on The study sheds light on current and future economic and social factors which affect the a rac veness of coffee farming compared with alterna ve income genera ng ac vi es in rural or urban areas. Geographically, the study focuses on sub-saharan African countries which are dispropor onally affected by the problem of ageing farmers. A number of constraints are iden fied which affect produc vity levels and thus profitability, e.g. lack of access to finance, weak links to markets, and lack of modern farming skills. The resul ng low and vola le farm income derived from coffee farming o en translates into this livelihood having a low social status, especially in the eyes of the be er educated and aspira onal young people. Therefore, it is not surprising that farming is becoming less a rac ve for young rural dwellers. Furthermore, the study describes how the lack of young people taking an interest in agriculture can have a nega ve impact on the sector. Youth is an important agent of change in rural areas which could drive modernisa on of agriculture. As a result, young people are needed to increase the adop on of technological innova ons and implementa on of modern farming techniques which are crucial to increasing produc vity in the coffee sector. This is par cularly valid in view of new challenges faced by the sector such as climate change. The study concludes with several recommenda ons on how to respond to the decreasing rela ve a rac veness of farming as a livelihood choice. The main goal should be to improve farm produc vity with the aim of increasing the economic return. Specific a en on should be given to removing obstacles and addressing challenges which dispropor onally affect young people. Programmes which are designed to improve financial literacy among young people are an important step as modernisa on of farms requires investment. As coffee is a tree crop with long investment cycles, it is necessary to provide farmers with tools to incur the upfront costs and with strategies to mi gate price risks. Finally, access to land for young people should be enhanced by facilita ng farm succession and crea ng efficient rental markets. ICO Annual Review 2015/16-21

23 A (ICC-117-6) Since March 2015 the ICO composite price has been consistently below the 10-year average of around 140 US cents/lb, raising concerns about the economic viability of coffee produc on and pu ng the livelihoods of coffee producers at risk in many countries. Prolonged periods of low prices strain liquidity and hamper investment necessary to increase yields and quality to meet future demand for coffee. In order to inform the debate about ways to improve the economic viability, the ICO has conducted a study to understand and assess produc on costs, revenues and profits at country level (Brazil, Colombia, Costa Rica and El Salvador) using detailed data provided by Members, covering the period 2006/07 to 2015/16. The results show that coffee produc on is not economically sustainable for many producers. Those who can make an opera ng profit o en struggle to cover the costs of investment in renewal of planta on. This is par cularly worrying in view of threats such as coffee leaf rust and the impact of climate change. An effec ve response requires significant investment in replan ng of be er adapted varie es. Over the past decade, costs of produc on followed a consistent upward trend, whereas interna onal prices varied significantly around a rela vely constant mean. As a result, the profitability of coffee growing has on average eroded over the me period covered by the study. Reduced profitability over me could result in consolida on of coffee farms and/or disrup on to coffee supplies, with some farmers choosing to abandon their crops. The study shows that in order to improve the economic viability of coffee produc on, an increase in produc vity, e.g. through more efficient use of fer liser and new varie es as well as adop on of modern agronomic techniques with the aim of mi ga ng produc on risk are needed. Furthermore, price risk, e.g. stemming from coffee price vola lity, should be addressed. Farmers require improved access to risk management tools with the aim of mi ga ng exposure to risk, and in order to strengthen resilience against inevitable shocks. The study also highlights that some countries have developed effec ve policy responses to factors which affect the profitability of coffee farming. For example, Colombia responded successfully to the threat of coffee leaf rust, while Costa Rica has become a pioneer for measures to mi gate the impact of climate change in the coffee sector. There is scope for sharing these posi ve experiences between countries ICO Annual Review 2015/16

24 The study points out that more research is needed to understand the economic viability of coffee produc on worldwide, e.g. through expanding the analysis to a larger number of countries. Currently, research is hampered by data availability. C C P : E S In September 2015 Members requested that the Secretariat consider relaunching its coffee country profiles. Accordingly, work on coffee profiles was included in the Programme of Ac vi es for coffee year 2015/16 and a set of guidelines was developed. The purpose of the guidelines was to assist Members in preparing the necessary informa on for the Secretariat and to ensure consistency. At its 116 th mee ng in Ethiopia, the Council approved the guidelines and the Secretariat invited Members that were interested in developing a profile for their country to contact the Execu ve Director. Demonstra ons of interest were received from Cameroon, El Salvador, Germany, Ghana and Italy. Close collabora on was established with the Salvadorian Coffee Council who worked relessly with the Secretariat to produce its coffee profile. As a result, in September 2016, Mr José Hugo Hernández, Execu ve Director of the Salvadorian Coffee Council, was able to present the profile to Members. He presented the main characteris cs of the coffee industry in El Salvador, most notably that coffee is predominantly grown on small farms. He also highlighted the drama c decrease in produc on as a result of prolonged low prices and an outbreak of coffee leaf rust. Following the success of this first profile, the Secretariat plans to con nue working with Members on the produc on of profiles for Cameroon and Ghana in the hope that they will be ready for the mee ngs in March ICO Annual Review 2015/16-23

25 STATISTICS SUSTAINABILITY AND PARTNERSHIPS Compliance was the main topic on the Agenda of the Sta s cs Commi ee during the coffee year. With regard to expor ng Members, it was noted that there have been improvements in the provision of sta s cal data with 76% full or sa sfactory compliance. For impor ng Members, full compliance was achieved during the period under considera on. The Secretariat has con nued in its efforts to contact expor ng Member countries regarding the provision of sta s cal data. A manual on compliance for expor ng Members is available on a USB memory s ck from the Sta s cs Sec on. This manual may also be viewed on the ICO website h p:// s cs.asp. With reference to Resolu on 420 on the Coffee Quality-Improvement Programme (CQP), the Organiza on monitored the results of Gradings on the Intercon nental Exchange (ICE) for Arabica and Robusta coffee. For 2015 exports of green coffee in compliance with the Resolu on totalled 50.8 million 60-kg bags, compared with 68.8 million 60-kg bags in The Secretariat conducted consulta ons on conversion factors for roasted, decaffeinated, liquid and soluble coffee. The ma er was reviewed by the Sta s cs Commi ee and Members agreed to keep the conversion factors unchanged for another three years. S R The Sta s cs Roundtable did not meet during the coffee year but the ma er did remain on the Agenda of the Sta s cs Commi ee. It was considered necessary to consult Members first and establish the best course of ac on in order to obtain mely and accurate sta s cal data. It was emphasised that sta s cs are one of the most important services that the ICO offers. The Roundtable will be re-convened in 2016/17 with a mee ng scheduled for November The past year saw two milestones in the global effort for sustainable development. Two months a er the adop on of the Sustainable Development Goals (SDGs), in December 2015 the Paris Climate Agreement was adopted at the 21 st Conference of the Par es (COP 21). These breakthrough agreements are likely to leave an imprint on the global poli cal agenda in the years to come and will also impact the work undertaken at the ICO in the area of sustainable development. A collabora ve approach to foster a sustainable coffee sector is at the core of the ICO s mission. The ICO contributes to this goal by providing the forum for discussions of coffee ma ers and sector development between Governments and industry; the Organiza on advocates on specific topics such as climate change to highlight the needs of the global coffee community comprising all stakeholders along the value chain, from farmers to consumers ICO Annual Review 2015/16

26 To this end, in coffee year 2015/16, the ICO a ended the COP 21 in Paris as an observer. The aim was to ensure that coffee was visible on the agenda for climate ac on. The Execu ve Director addressed the plenary mee ng poin ng out the threat climate change poses to the sector and showing ways to mi gate the impact of global warming on coffee farmers and consumers. The ICO also hosted two well a ended side events: one at the COP 21, and a second at the Global Landscapes Forum. These interac ve sessions gave the opportunity to long-standing partners of the ICO such as Hivos and Coffee & Climate to discuss, with the greater public, concrete steps to increase the coffee sector s resilience to the impact of climate change. The ICO has also strengthened its engagement towards a sustainable coffee sector under the Vision 2020 framework which was set up under the 4C Associa on, an industry body which provided a voluntary entry-level standard for the coffee sector in order to address sustainability issues, and IDH, a body whose mission was to carry out large-scale PPPs and technical projects to support coffee producers. There has been an organisa onal change and the 4C Associa on and IDH have merged into a new en ty, the Global Coffee Pla orm (GCP). The GCP has facilitated public-private dialogue in order to iden fy and address the needs of coffee farming communi es effec vely through the development of public private strategies, benefi ng the coffee sector as a whole. In the past year, considerable progress has been made, both conceptually working towards a global sustainability agenda and via successful joint workshops and projects in various countries. For example, the ICO together with GCP facilitated a comprehensive project on Na onal Coffee Pla orms (NCP) which are ins tu ons bringing together representa ves of the domes c coffee industry such as farmers and exporters, and the public sector. While o en different in their ins tu onal setup, these vehicles have proven to be effec ve in developing strategic objec ves and tools in order to advance the domes c coffee sectors. To understand and reap the benefits of the NCPs, whilst aligning na onal coffee sector strategies with the SDGs, the ICO and the GCP as the joint Secretariat of Vision 2020, undertook a two phase consulta on process consis ng of (i) consulta ons in-situ in Brazil, Colombia, Indonesia, Tanzania, Uganda, and Vietnam; and (ii) a one-day workshop for interna onal stakeholders hosted at the ICO s headquarters in September before the 117 th Session of the Interna onal Coffee Council. During the workshops, relevant informa on on the ins tu onal setup, success stories, and lessons learnt were gathered. Subsequently, the workshop in London provided a forum to exchange these country specific insights and to establish links between the NCPs to allow for learning and alignment towards the SDGs. In the coming coffee year, the ICO will remain commi ed to its work in the area of sustainable development. Its par cipa on in COP22 in Marrakech marks the first step. ICO Annual Review 2015/16-25

27 LIBRARY / INFORMATION SERVICES The Library & Informa on Sec on is at the heart of the ICO. It supports the Organiza on in its mission to provide objec ve and comprehensive economic, technical and scien fic informa on on the world coffee sector. The gathering, processing and dissemina on of informa on are extremely important in the coffee community. One of the du es of the Sec on is to organise group visits to the ICO. The Librarian gives lectures on coffee-related issues, the history of the Organiza on and the importance of the role played by the ICO within the world coffee sector. Lectures are followed by a Q&A session and an op onal, fun coffee-related quiz, where visitors can test their knowledge about all aspects of coffee. This year s visitors came from SCAE-Italy (11 baristas & coffee shop owners), nine Brazilian coffee producers represen ng coopera ves from the states of Minas Gerais and Espírito Santo, a group of 57 law students from the Facultad de Derecho de ESADE (Universidad Ramon Llull, Barcelona, Spain) and 90 post-graduate students and staff from Coventry University, UK. S ICO C C J 2016 Library users in coffee year 2015/16 came from England and Wales, Brazil, Italy, Spain, Turkey and Uganda. Among researched subjects were the specialty coffee market, how to import Honduran coffee into the UK and world coffee with an emphasis on Arabica coffee. The Library & Informa on Sec on has con nued to expand and refine its opera ons to provide a full service to users, responding to new requests for informa on across a wide range of coffee-related subjects. Online requests for informa on con nues to grow and have again exceeded 2,000 from all over the world. Both online catalogue and physical collec ons are being processed to incorporate new materials as well as items acquired by the ICO prior to The new ICO website, currently under construc on, will have an exclusive, more dynamic Library & Informa on Services area in coffee year 2016/ ICO Annual Review 2015/16

28 FINANCE AND ADMINISTRATION The ICO employs 24 people of 12 different na onali es. It is financed by contribu ons from Member Governments who pay a contribu on based upon their average coffee exports or imports. The total expenditure budget amounted to 2.9 million in 2015/16. The ICO s headquarters have been based at 22 Berners Street, London W1 for over 45 years. However, the lease of the building expires on 31 March 2017 and the Interna onal Coffee Council took the decision to vacate the premises and search for a new loca on. At the me of wri ng the Annual Review, alterna ve premises have been found at 222 Gray s Inn Road, London WC1. A Heads of Terms agreement, which sets out the most material elements of a new lease, has been signed with the landlord of 222 Gray s Inn Road. There are good grounds for op mism that a new lease will be finalised to enable the Organiza on to move to its new headquarters in early April This will also involve some refurbishment of the new premises, although every effort will be made to take as much furniture and equipment from 22 Berners Street to the new premises in order to keep refurbishment costs to a minimum. The new premises are located approximately one mile to the east of the current premises: the nearest Underground sta ons are Chancery Lane, Holborn, King s Cross and Euston (where main line railway sta ons are also situated). Gray s Inn itself is one of the Inns of Court and is one of the primary office complexes for judges, barristers and other lawyers: it therefore represents a pres gious and convenient loca on for the ICO s ac vi es. The new premises will not however house the Organiza on s conference facili es: indeed, one of the objec ves in searching for new premises was to reduce the ICO s liability to property costs. The Organiza on will therefore hire such conference facili es on a commercial basis in future, although there may also be the opportunity to take advantage of an offer from another interna onal organiza on based in London to use its conference rooms, which also possess the advantage of being able to offer interpreta on facili es. The ICO has been undertaking a revision of its Staff Regula ons and Staff Rules which have not been updated for several years. The European Union financed the work of a Human Resources professional to review the exis ng Regula ons and Rules and to make substan al sugges ons for amendment. The revised document was reviewed by the Execu ve Director and members of staff and a Working Group, which is open to all Members, was established to finalise the document. One mee ng of the Working Group was held in late 2016 and a further mee ng will be held early in It is hoped that a final document will be discussed at the next mee ng of the Finance and Administra on Commi ee and the Interna onal Coffee Council in March ICO Annual Review 2015/16-27

29 OFFICE HOLDERS Interna onal Coffee Council Chairman: H.E. Mr Iván Romero-Mar nez (Honduras) Vice-Chairperson: Ms Tanya Menchi (USA) Finance and Administra on Commi ee Chairperson: Ms Amy Diggs (USA) Vice-Chairperson: Mr Felipe Robayo (Colombia) Expor ng Members: Bolivia, Colombia, India, Indonesia, Mexico, Uganda Impor ng Members: EU, Japan, Russian Federa on, Switzerland, USA Projects Commi ee Chairman: Mr Primus Kimaryo (Tanzania) Vice-Chairman: Mr Conradin Rasi (Switzerland) Expor ng Members: Bolivia, Cameroon, Colombia, Costa Rica, Guatemala, India, Indonesia, Tanzania Impor ng Members: European Union, Switzerland, USA Promo on and Market Development Commi ee Chairperson: Ms Vera Espíndola Rafael (Mexico) Vice-Chairperson: Ms Amy Diggs (USA) Expor ng Members: Bolivia, Colombia, Côte d Ivoire, El Salvador, India, Indonesia, Kenya, Mexico Impor ng Members: European Union, Switzerland, USA Sta s cs Commi ee Chairman: Mr Piotr Krawczyk (EU-Poland) Vice-Chairman: Vacant Expor ng Members: Bolivia, Colombia, El Salvador, Gabon, Ghana, India, Indonesia, Nicaragua Impor ng Members: European Union, Switzerland and the USA Consulta ve Forum on Coffee Sector Finance Chairman: Mr Juan Esteban Orduz (Colombia) (also Chairman of Core Group) Vice-Chairman: Mr Ödön Pálla Sagues (EU-Spain) Core Group on the Consulta ve Forum Expor ng Members: Bolivia, Colombia, Costa Rica, Côte d Ivoire, Ethiopia, Uganda Impor ng Members: EU, Russian Federa on, Switzerland, USA Ex-officio Member: Execu ve Director Assisted by: Chairman of PSCB, and four advisors: Ms Noemí Pérez (Fast), Mr Roy Parizat (World Bank), Mr Silas Brasileiro (Conselho Nacional do Café, Brazil) and Mr Nicolas Tamari (Sucafina SA) Private Sector Consulta ve Board (PSCB) (alternates in italics) Chairman: Mr Leman Pahlevi (GAEKI) Vice-Chairman: Mr Ramaz Chanturiya (Rusteacoffee) Producer representa ves: Colombian Milds: Federación Nacional de Cafeteros de Colombia (FNC), Sociedad Exportadora de Café de las Coopera vas de Caficultores (EXPOCAFÉ), Asociación de Exportadores de Café de Colombia (ASOEXPORT), African Fine Coffees Associa on (AFCA) Other Milds: Asociación Nacional del Café de Guatemala (Anacafé), Specialty Coffee Associa on of Panama (SCAP) Brazilian and Other Natural Arabicas: Conselho dos Exportadores de Café do Brasil (CeCafé), Associação Brasileira da Indústria de Café Solúvel (ABICS), Associação Brasileira da Indústria de Café (ABIC), Conselho Nacional do Café (CNC), Confederação da Agricultura e Pecuária do Brasil (CNA), Interna onal Women s Coffee Alliance (IWCA) Robustas: Conseil du Café-Cacao (3C), Indonesian Coffee Exporters Associa on (GAEKI), Uganda Coffee Federa on (UCF) Consumer representa ves: All Japan Coffee Associa on (AJCA), Coffee Associa on of Canada (CAC), European Coffee Federa on (ECF), Ins tute for Scien fic Informa on on Coffee (ISIC), Na onal Coffee Associa on of USA (NCA), Russian Associa on of Tea and Coffee Manufacturers (Rusteacoffee), Specialty Coffee Associa on of America (SCAA), Speciality Coffee Associa on of Europe (SCAE) 28 - ICO Annual Review 2015/16

30 Our Members Exporting Countries Angola Bolivia Brazil Burundi Cameroon Central African Republic Colombia Costa Rica Côte d Ivoire Cuba Democratic Republic of the Congo Ecuador El Salvador Ethiopia Gabon Ghana Guatemala Honduras India Indonesia Kenya Liberia Madagascar Malawi Mexico Nicaragua Panama Papua New Guinea Paraguay Peru Philippines Rwanda Sierra Leone Tanzania Thailand Timor-Leste Togo Uganda Vietnam Yemen Zambia Zimbabwe International Coffee Agreement 2007 Exporting Members European Union (Austria Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom) Japan Norway Russian Federation Switzerland Tunisia Turkey United States of America International Coffee Organization, 2017 Exporting Members Date of Deposit Angola 22 September 2009 Liberia 6 October 2009 Bolivia, Plurinational State of 10 April 2012 Madagascar 26 November 2014 Brazil 2 February 2011 Malawi 18 July 2012 Burundi 21 September 2009 Mexico 8 April 2010 Cameroon 17 September 2012 Nicaragua 12 August 2009 Central African Republic 24 August 2010 Panama 12 March 2009 Colombia 2 December 2008 Papua New Guinea 6 November 2009 Costa Rica 11 December 2009 Paraguay 21 August 2013 Côte d Ivoire 15 October 2008 Peru 14 December 2015 Cuba 4 December 2008 Philippines 29 March 2011 Democratic Republic of the Congo 14 December 2015 Rwanda 17 May 2012 Ecuador 30 September 2008 Sierra Leone 5 May 2011 El Salvador 4 December 2008 Tanzania 22 September 2009 Ethiopia 8 July 2010 Thailand 4 August 2009 Gabon 25 February 2009 Timor-Leste 5 January 2009 Ghana 17 August 2009 Togo 21 September 2010 Guatemala 23 March 2011 Uganda 1 March 2010 Honduras 7 June 2010 Vietnam 28 August 2008 India 22 September 2008 Yemen 14 July 2010 Indonesia 5 February 2009 Zambia 3 August 2011 Kenya 22 May 2008 Zimbabwe 24 May 2012 Membership as at 30 September Exporting Members Importing Countries Date of Deposit 8 Importing Members Importing Members Date of Deposit European Union 17 June 2008 Japan 23 July 2015 Norway 21 September 2010 Russian Federation 24 April 2015 Switzerland 11 September 2009 Tunisia 21 September 2010 Turkey 28 March 2011 United States of America 28 August 2008 Signatory Governments Date of Signature Benin 23 September 2009 Guinea 2 July 2008 Nigeria 21 July 2008